Employment Relations of Bangladesh — страница 4

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required to have a day-care centre. In terms of healthcare factories with more than 500 workers are required to have a healthcare clinic and be dispensary staffed by a doctor and/ or a nurse. Any kind and all forms of physical punishment are outlawed and punishable by the state law. When a worker wants to legally leave a factory, the employer is required to pay a severance of 5000 taka, which is about $87.11 for each year worked in the factory by the worker. The right to organized and bargain collectively are legal right stated by Bangladesh’s constitution and labour law with the exception of Export Processing Zones, where these laws do not apply.[12] Although there are rights set by the government, they are hardly enforceable and rarely controlled by the state institutions.

Public sector wages are set by the National Pay and Wages Commission and may not be disputed. Although, there are minimum wages set by the government for the private sector, in real they are still ruled and set by the industry. Collective bargaining rarely occurs, because high unemployment exists and employees are afraid of loosing their jobs. And although the legal workweek is set to 48 hours with one day off, this law is rarely enforced, especially in the garment industry. Children under the age of 14 are not allowed to work in factories, but may work under certain circumstances in other industry sectors. Still such restrictions are neglected by employers and you will find children working in every sector of the economy. In 2002, the government estimated that 6.6 million

children between the ages of five and 14 years were engaged in all types of employment activities, many that were harmful to their well-being.[13] Tax Structure: A Bangladesh resident is considered to be a person who spends 182 days within the country in an income year. In case a person has been in the country for 90 days in the income year and 365 days in four years - preceding this year, this person will also be considered a resident.[14] Total taxes in Bangladesh are divided into direct and indirect taxes. Direct taxes in Bangladesh consists of taxes on income (income tax, corporation tax, agricultural income tax) and taxes on property (wealth tax, gift tax, estate duty, capital gains tax, urban property tax, house rent, land revenue, registration, and non-judicial stamp).

Taxpayers in Bangladesh can be categorized into three main groups. The elite group consists of corporate taxpayers (24,770) that make up about 3.02% of the total taxpayers. The next group consists of wage earners or salaried taxpayers (154,245), who shares about 18.81%. The largest and the last group consists of all other remaining taxpayers, mainly those who have an income from business and profession (640,795) that make up about 78.17%. Personal income taxes are unevenly distributed among the registered taxpayers. In reality a major portion of taxes is paid by small group of people with higher marginal rates. A high number of registered taxpayers always remain in lower income groups, for whom it is easy to receive tax incentives or tax exemptions and who share only a little

burden of taxes, often at lower marginal rates. These taxpayers are often small and medium traders and manufactures. There are also a lot of untaxed investments because of tax amnesty.[15] Personal Income Tax Bangladesh 2002[16] Tax Exemption Limit Annual Income (Taka) Statutory Tax Rates Minimum Altern. Tax Payable 75.000 On first 75.000 0% On next 150.000 10% On next 150.000 15% 1.200 On next 250.000 20% On Balance Income 25% As one can see the maximum personal taxation is 25%. On the company level a business pays 15% tax of total income or 100,000 taka whichever is less. Small and cottage industries receive a tax rebate of 5% to 10% depending on the income and production volume. There is no tax obligation for a firm on the first earned 60,000 taka, 10% on the next 40,000 taka,

15% on the next 50,000 taka, and 20% on the next 150,000 taka of the total income. All in all there is 25% tax on the balance of total income. Corporate tax rates for industrial companies whose shares are publicly traded are 35% and the rate of those whose shares are not publicly traded is 40%. Banks, financial institutions, insurance companies, and local authorities pay 45% income taxes.[17] Treatment of Foreign Nationals: The number of foreign nationals seeking work permits in the Board of Investment increased manifold recently after the caretaker government implemented measures against overstay of foreigners in Bangladesh. Although there are regulations many foreigners enter the country under tourist visas and leave the country without taxes after working in the computer